Laith Khalaf: Is Bondageddon finally here?

'Gilts are tanking'

clock • 3 min read

Taking a look at gilts, Laith Khalaf asks, and seeks to answer, whether 'Bondageddon' has arrived...

Gilts are tanking, fast. The yield on the benchmark 10-year gilt has doubled since the beginning of December, and now stands at almost 1.5%, its highest level since 2018. The average gilt fund has fallen 8% in the last two months, which isn't enough to make an equity investor blush, but for an asset that people flock to as a safe haven, that's not a great look. Inflation obviously plays a big part in what's happening in the gilt market. CPI is now expected to rise to 7% in the spring and is still forecast to be above 5% this time next year, and that's not helpful for the fixed income str...

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